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The Best Advertising Medium In Haywood County .Published At The Eastern Entrance of The Great Smoky Mountains National Park Read by Thinking People
VOL. XL1V
NO.
WAYNESVILLE, NORTH CAROLINA
THl'KSDAY. MAY U. 11KM
STRONGER BUSINESS
Uv F. M. LAW
tretldcnt American Bankers
1 ssociatiun
KING the crisis when confidence
is shattered, bankers were prop--onoerned
in liquidity. Their mam
thought was to
prepare to meet
any demand for
withdraw;. 1 of
funds. They were
more interested
therefore in col
lecting loans than
in making them.
For this taey can
not be justly
blamed. It was a
VSff JMl proper procedure.
iow inai con
fidence has been
M. LAW
so largely re
ored banks will naturally resume a
in ore normal lending policy. This does
rut mean they will or should extend
i'lhsc or unsound credi:. but that in the
inmost good faith bankers will per
form their proper part in recovery by
a sympathetic and constructive attl
;!ule in the making of sound loans. Nor
-huuld -commercial banks make capital
i r lone time loans, for the reason that
iheir loans are made from funds de
rived from deposits payable for the
most part on demand.
When the return of confidence is
further on its way, business men will
I'm nerd for credit in making their
P 'an's. Then good borrowers, who lor
the most part have been so conspicu
ously absent from the market, will re
turn. They will bo warmly welcomed
by the banks.
Business Men's Fears
Business men have not yet laid all
their fears. They worry about what
Congress may or may not do. They con
cern themselves about a trend toward
control of business by government.
They fear taxes beyond their power to
pay. These are real sources c worry
and when they are reassured along
these lines they will be more Inclined
to take a fresh look at the future and
to make plans to go forward.
As a matter of fact there are tangi
ble evidences of recovery. The Federal
Reserve Board officially has stated
that prices, wages, business activity
and production were back to the high
est peak since early in 1931. Commer
cial failures in the United States are
being cut almost in half as compared
with the same period last year. It has
been reported that the decline in ex
port and import trade was definitely
checked in the middle of 1933 and re
placed during the last half of the year
by a substantial recovery movement.
Among favorable factors is the im
proved condition of the banks. It is
doubtless true that the banking struc
ture of the country has never been in a
rounder, stronger and more liquid con
dition than it is today. My authority
for that statement Is the Comptroller
of the Currency. No longer ia there any
fear or thought of bank runs. Deposi
tors once more know that their money
is safe and the hanker, thrice armed In
the knowledge of his own strength, is
looking forward.
Banks Repaying Loans From
R. F. C.
Although banks and trust companies
have been the largest borrowers from
the Reconstruction Finance Corpora
tion, they have exceeded all other
lasses of borrowers in the rapidity of
their repayments. Since the Inception
t the R. F. C. in February, 1932, loans
have been authorized by it to 7,080
linking institutions in the amount of
? 1,995.000,000. Of this sum $442,000,000
was not taken by the borrowers, the
actual advances being $1,553,000,000.
.He-payments against these advances
tnmugh April 30, 1934, aggregated
9-3,000,000,,or about 60 per cent. The
ratio of repayments for all classes of
I'm rowers has been only about 37 per
ff ni. These rapid repayments by the
basks. are taken by competent observ
ers as a strong indication of returning
normal financial and banking condi
tions. 'ft
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Bankers Finance Scholarships
The American Bankers Association
Foundation for Education In Econom
ics has since its establishment in 1928,
awarded. 354 college loan scholarships,
ifie total loans repaid in that period
be"ig $262,000 and the amount now
outstanding $86,900. The total invest
fflents of its funds are $540,000.
Black Frosts
Black frost" is a term originally
ed In reference to a frost or killing
"eeze at a temperature above the dew
1 mt ana not accompanied by white
noar frost deposits. Such frosts nsu
hit rti tte exP8ed vegetation black,
it it 18 not suPPsed to have given
its name. This term is Ignored by
weather bureau which designates
sucn freezes as light, heavy or killing.
PleruJ Spots
ADMIRAL GARY GRAYSON, right, hands President Roosevelt three-foot check
for 81,003,000 gathered at nation-wide Birthday Ball for President under national
committee of leaders headed by Henry L. Doherty. Fund is nation's gift to endow
Warm Springs Foundation for Infantile Paralysis. In rear, General Pershing.
ing
STATUE of the Great Com
moner. William Jennings Bryan,
unveiled in Washington, Presi
dent Roosevelt Speaking.
P
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TO CELEBRATE ITS RECOVERY, Florida observes state wide All-Florida Pioneers'
Day to honor three Henry's (left) the late Henry M. Flagler, railroad builder and
south Florida developer; center, Henry L. Doherty, credited with leadership in bring
about recent phenomenal recovery; right, the late Henry B. Plant, railroad builder.
h&. iLA r" fell -
SAMl'EL INSI LU undor
charges in colapse of utili
ties empire, rot ur nod to V.
S. as prisoner and released
in $21)0,000 hail.
. i -
Subscribe; Now To
The Mountaineer
$1,00 A Year
in the Late News
AGAIN IN THE NEWS after
400 years, Jacques Cartier is to
be remembered this summer in
a series of fetes in Quebec
marking anniversary of his dis
covery of Canada in 1534. More
than 16,000 miles of modern
highways in Quebec are being
put into fine shape for expected
record tourist travel to Gaspe
peninsula, Trois Rivieres. Mon
treal, Quebec City and other
spots where fetes will be held.
"a
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52$ WAX I
CHIEF IN BRAIN TRUST pre
moted, Prof. Rexford G. Tug
well takes new post of Under
Secretary of Agriculture.
K LARA M AYR, who plnyj.
part of Mary Magdalene in
300th anniversary of Pas
sion Play at Oberaminer
Oju this Summer, plans t
emigrate to America.
Ik
QUEEN OF THE AMERICAN TURF this
year, Mrs. Isabel Dodge Sloane, right, who
horse Cavalcade, left, won Kentucky Derby
and second in Preakness to stable mate, High
Quest. Sloane horses also won Florida Derby,
Wood Memorial nd other noted races.
n
PUBLIC OPINION
AND THE BANKS
Hv 1'. N. SMI I'll !:KI)
; .1 rcuftvi' Miittut;i'7
A met ii utt Itxnkt r s . ) ssin ui!i
M
IBflUi.!-. nankuii: imlav apiuars m a
i A- bank in u totlnv apiu-ai
" . wluiilv (lis!(H-(Hl lmiil in the oves
wiuillv tlistorlctl ImSu in tin
of sniin', tho mo.iv rcasnniiiL' clcmonts
jm our population
uuilniibTodlv liavo
a less laundiooil
v u w tlian would
apiiciir from cer
tain irresponsible
o r a I o r 6 , often
pos'-ing as spokes
men lor that in
delimte ( n a n ti.
called "the mass
of our people.
Anti-social acts
on the a r t of
some bankers for
1-. N. Slll l'lll ld)
merly have boon
the subject of spectacular exposures,
but 1 can say without reservation that
they were in no wav typical of the acts
and attitudes of t lie vast maiorlty of
their fellow bankers. Tlio public mind
was shocked into the belief that these
untypical instances woro far more rep
resentative than tlioy really wcrn, and
this belief has been encouraged by po
litical and demagogic elements.
The Hunkers Toduy
Tlio bankers who are in charge of
our banks today represent .men who
withstood tlio temptations and avoided
tlio economic pitfalls of tlio great
boom. If they luul not they would not
bo there, or their banks would not
have boon able to Mirvivo the rack and
rum of' 'tlio economic, hurricane, by
; which even many banks and bankers,
whoso .conduct - was ataovo reproach,
have boon destroyed. The other types 1
of hankers, those that fell below tho
high standards of professional ethics
and business prudence, that character
ized thoso that romain, have paesod
out of the picture. Hut they have left
for thoso that remain a dilllcult herit
age of suspicion and. ill will.
How Irrational this is, when wo ro
fleet that not more than throo or four
per cent of our entiro population suf
lered personal loss hecauHO of what
any banker did or neglected to do,
whereas literally millions of bank de
positors (liil not lose a mnglo cent as
a result of banking difficulties and
really owe a voto of confidence and
thanks to their own bankers who were
true to the highest conceptions of their
stewardship and brought their institu
tions and their customers safely
through tlio greatest business disaster
tho world has ever seen. It has been
a peculiar, feature of tho psychological
distortion of the times that many who
owe nothing but gratitude to their
bankers joinei! in blaming tho hanker
far out of proportion with any rational
consideration of the facts.
EXAMINATIONS FOR
TRUST INSTITUTIONS
FEDERAL examination of trust de
partments is the latest develop
ment in banking supervision and trust
companies and banks operating trust
departments are welcoming -this de
velopment because It fills a long-felt
want, It Is stated by the Trust Division
of the American Rankers Association.
Despite the growing importance of
American trust business In recent
years examining officials have never
given to trust departments the atten
tion paid to commercial banking de
partments, this authority pouits out.
Now the Federal Reserve -System,, in
conjunction with the Comptroller of.
the Currency, has undertaken to bi lug
the examination of trust do
up to the level of eommereui
aminatious, it says.
Experts in trust work are
ployed.by the various Feder.
Banks. These experts wrl;.
special staffs, of trust ex-am In
twelve Federal Reserve Dist,
partmcnt
! hank ej
bviing e:il
1 Rt Mr'
head tin
ers In la--Irts,'
Sd
cia! staffs are already at work in.-so.aiu
of the Reserve '-Districts, ...including
Boston, Atlanta, Richmond and Chi
cago. The Federal. Reserve will ex
amine the trust departments of state
chartered members of the Reserve S 3
. tem. , (-.-.- .
Uniform Supervision
, Meanwhile, the Comptroller , of. :ha
Currency has built .up over , tho past ,
two: years a staff of special-esaniir.eM..
for the trust department of -national,
banks. All national banks are. members
Of the Federal Reserve System, Smcu
nearly all state-chartered tru'si ..institu
tions are members of the Reserve Sys
tem the new plan w:!l tr.ng, -about
what amounts to Federal examination
for the trust busiiK ss. -,
j J Meteoroloir:
I thundei.-toi in
; daily. . .
a-i -H.t 44,000
e'i ' ' ri'.e earth
if
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